Doctrine of Commercial Impracticability with Resemblance to the Frustration of Purpose of Private International Contracts: An Analytical Study

Abstract

In this modern era of business transactions, the parties are in a state of discernment while deciding the contractual obligations. The doctrine of commercial impracticability has proved benevolent for International business transactions, like sword or shield. The parties entering into the business transactions have certain purposes. If the purposes are destroyed due to the supervening circumstances, they may avoid contractual obligations as the contract becomes commercially impracticable for them. Sometimes, the doctrine of commercial impracticability is considered closer to the English concept of frustration of the purpose of contracts. Article 2-615 of the Uniform Commercial Code (USA) provides the basic concept of commercial impracticability; although several interpretations of courts are available, in different ways and on different aspects; that may cause the capacity of parties regarding the presumption of the true construction of the private, International contract. Now, there is an immense need to further elaborate and categorize the concept of the doctrine of commercial impracticability and doctrine of frustration of international contracts, both in legal and practical aspects, in emerging economic states, especially in Pakistan. This research article scrutinizes the optimistic approach followed by the superior courts of Pakistan by applying the provisions of Contract Act 1872 to interpret the provisions relating to frustration. This article also identifies the suitable standards of the doctrine of the excuse of performance of contracts in Pakistan and marks its application in Pakistan, as to whether the courts are following the strict standards or even recognizing these doctrines for the parties to get shelter as an excuse to perform their contractual obligations or not.